President's comments

Axis continues to show stable growth. With close to SEK 2.3 billion in revenue, we beat our previous highest revenue for a single quarter. Foreign currency effects only had a marginal impact on sales and earnings. The strong performance was to large extent due to seasonally lower costs.

There was a stable sales trend in all regions with the exception of South America, where the financial situation remains strained, as well as the Middle East where the investment climate is restrained at present. Continued overheating in the global component market may have also caused some effects on deliveries and sales.

During the quarter, we were reminded of the importance of our efforts in relation to cyber security. This summer, it was noted how malicious code enabled the hacking of a large number of network cameras around the world. Axis and a number of other companies in the market had products, which were exposed to risk. Thanks to our efficient processes and excellent tools, we were able to act immediately and make the necessary updates so that our customers would not be impacted. Our work in this area is continually ongoing. It is a question of developing secure products, training our customers and having well worked-out processes in place when risk situations nevertheless arise.

Otherwise, continued development of new products and solutions remains in focus. For example, several innovations were unveiled at the ASIS security exhibition in Dallas in September. And last but not least, we can be very pleased with the excellent results from Axis’ customer survey, which was conducted earlier this year.

This information is information that Axis AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 08.00 CET on October 20, 2017.

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About Axis Communications

Axis offers intelligent security solutions that enable a smarter, safer world. As the market leader in network video, Axis is driving the industry by continually launching innovative network products based on an open platform - delivering high value to customers through a global partner network. Axis has long-term relationships with partners and provides them with knowledge and ground-breaking network products in existing and new markets.

Axis has more than 2,700 dedicated employees in more than 50 countries around the world, supported by a global network of over 90,000 partners. Founded in 1984, Axis is a Sweden-based company listed on NASDAQ Stockholm under the ticker AXIS. For more information about Axis, please visit www.axis.com.